Yosemite Counterclaims Against Seaton For Breach of Warranty

PROVIDENCE, R.I. - Yosemite Insurance Co. has counterclaimed against Seaton Insurance Co. in Rhode Island federal court, seeking return of some $462,903 in reinsurance payments made for underlying asbestos and pollution losses sustained by numerous corporate policyholders. Seaton Insurance Co. v. Yosemite Insurance Co., No. 08-542 (D. R.I.).

In its June 2 answer to the counterclaims, filed in the U.S. District Court for the District of Rhode Island, Seaton denies Yosemite's allegations that it breached the reinsurance contracts' retention warranty. The counterclaims were filed in response to a suit filed by Seaton in December that demands $550,000 in reinsurance proceeds …